Firewall
Legal barriers that prevent both the transference of inside information and the performance of financial transactions between commercial and investment banks. Investopedia Says:
Restrictions placed on collaborations between banks and brokerage firms under the Glass-Steagall Act of 1933, acted as a form of firewall.
This works similarly to fire wall software and hardware used in preventing or limiting outside access to a company's internal servers and networks. Related Terms:
Broker
Broker-Dealer
Chinese Wall
Commercial Bank
Dealer
Glass-Steagall Act
Inside Information
Investment Bank |